I'd like to use this to replace the original Faenza icons, but I don't know to use it on Ubuntu 11.10.
If I run the "index-theme" in the terminal, there are something like errors such as:
./index.theme: line 1: [Icon: command not found
./index.theme: line 5: theme: command not found
./index.theme: line 8: [actions/16]: No such file or directory
./index.theme: line 13: [animations/16]: No such file or directory
......

That icon comes with the original faenza icon set. Try installing the faenza icon set that comes with your distro - it may have been adjusted there...
Alternatively you can change that icon yourself by replacing the "distributor-logo" icon in the "places" folder.